With fraud allegations engulfing Patisserie Valerie, Nicola Sharp of business crime solicitors Rahman Ravelli emphasises the importance of preventing fraud and investigating any suspicions of it.
A report into the collapsed cafe and cake chain Patisserie Valerie has uncovered evidence of fraudulent cheques being signed and emails that were sent discussing made-up invoices.
It has been reported that six people face arrest. But whatever the eventual outcome, Patisserie Valerie is a sharp reminder of what happens when a company's fraud prevention measures fall short.
The key to tackling fraud is prevention: senior staff researching the potential for problems and devising and introducing procedures to ensure wrongdoing can be identified and prevented. Not doing this makes any company vulnerable to fraud. Record keeping, payment procedures, management and monitoring structures and working relationships must be scrutinised for fault lines that could allow fraud to flourish. If a company's senior figures feel unable to carry out this exercise, there are business crime lawyers who can do this.
An internal investigation commenced at the first hint of fraud can be vital. It can help the company determine whether fraud has been committed, the scale of the problem and whether it is best to report it to the police or other agency, bring a private prosecution against those believed to be responsible or bring civil proceedings to recover what has been taken. It is also important to note that a company that self-reports the problem to the authorities is likely to receive more favourable treatment than if the authorities find out about the wrongdoing for themselves.
But fraud prevention procedures that are fit for purpose can go a long way to preventing the problem ever reaching this stage.
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